Epson 2007 Annual Report Download - page 8

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6Seiko Epson Corporation
Established in March 2006, the mid-range business plan has already helped us
secure an improvement in business performance in the fiscal year ended March 31,
2007, and under it we are seeking to generate annual ordinary income of more than
¥100 billion in the fiscal year ending March 31, 2009.
Tothat end, Epson has established the following five mid-range business
policies:
1) redefine and reinforce the business and product portfolios, 2) reorganize the
electronic device businesses, 3) streamline costs, 4) reformthe governance system,
and 5) reform the corporate culture.
Under these policies, Epson focused its efforts on the first three of these
challenges in the fiscal year ended March 31, 2007, the first year of the mid-range
business plan.
Specifically,inkjet printer business earnings had deteriorated in the previous year
due to slow improvement in printer profitability and stagnant ink cartridge growth
rates. In response, Epson targeted the fiscal year ended March 31, 2007, as a year
for boosting corporate stamina. As a result, Epson has become morecost-
competitive and rolled out a marketing strategy that focuses on profitability.
Furthermore, in our display business, we continued to take steps to cut costs in
response to falling prices through a range of measures, including introducing a
design-to-cost approach and carefully selecting components suppliers. This
business has positively responded to strong demand for mobile phones and other
products by ensuring a stable supply of high-quality products.
Q1. What were you able to accomplish in the first year of the mid-
range business plan?
An Interview with the President: Approaching the Second Year
of the Creativity and Challenge 1000 Mid-Range Business Plan
Epson continues to rapidly drive forward reforms for
increasing profitability and to lay the foundations for
future sales and earnings growth.
The following interview provides an overview of the first-year results of
Epson’s mid-range business plan, Creativity and Challenge 1000, and
explains the measures and policies that Epson is implementing to
achieve the business targets set forth therein.
Mid-Range Business Plan-First Year Review
Seiji Hanaoka, President